Most people probably don’t associate bitcoin technology with global aid distribution. But perhaps they should… here’s how the use of blockchain could be crucial in the fight against inefficient aid distribution:
During my time working in Afghanistan, there was a hospital in Kabul that was so desperate for a single generator that it applied to multiple UN agencies for help. They received five.
Although the hospital’s needs were met, the duplication simply resulted in wasted resources. This is a familiar story – it happens all over development and humanitarian sectors.
Duplication isn’t the only source of wasted resources – many inefficiencies are built into the multiple layers of the international aid funding system.
Starting with taxpayers in contributing countries, aid funds go through many hands, from one institution to another. Each layer adds on additional costs, entails additional reporting requirements and means increased time to deliver results. Read more.